10. Non-Cash Share-Based Employee Compensation

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

NOTE 10 - Non-Cash Share-Based Employee Compensation

The Company has employee and non-employee director stock option programs.  Related to these programs, and in accordance with ASC Topic 718, “Compensation-Stock Compensation”, the Company recorded non-cash share-based employee compensation expense of $16 and $33 for the three and nine months ended September 30, 2015, respectively, compared with $11 and $36, respectively, for the same periods last year.  The Company considers its non-cash share-based employee compensation expenses as a component of selling, general and administrative expenses ($16 and $33 for the three and nine months ended September 30, 2015, respectively, compared with $11 and $36 for the same period last year).  There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.

The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of a stock option grant. The non-cash share-based employee compensation expense recorded in the three and nine months ended September 30, 2015 was calculated using certain assumptions. Such assumptions are described more comprehensively in Note 10 (Share-Based Employee Compensation) of the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014. 

A summary of activity under the Company’s stock option plans during the nine months ended September 30, 2015 is presented below:

As of January 1, 2015	Stock Options		Wgt. Avg. Exercise Price ($) Per Share		Wgt. Avg. Remaining Contractual Life (Years)		Wgt. Avg. Grant Date Fair Value($) Per Share		Aggregate Intrinsic Value ($)
Outstanding		414,778		3.79		-		2.29		-
Vested		361,443		3.91		-		2.55		-
Nonvested		53,335		3.00		-		0.54		-
Period activity
Issued		30,000		5.53		-		1.99		-
Exercised		87,002		3.16		-		1.31		-
Forfeited		-		-		-		-		-
Expired		15,000		5.70		-		2.05		-
As of September 30, 2015
Outstanding		342,776		4.02		3.31		2.52		376,780
Vested		327,776		3.96		3.25		2.55		376,780
Nonvested		15,000		5.35		4.68		1.93		-